√ Definition of Commercial Bank, Duties, Functions, Types and Activities
Definition of Commercial Banks, Duties, Functions, Types and Activities – In this discussion, you will learn about Commercial Banks. Which includes the definition, duties and functions, types and activities of commercial banks with complete and easy-to-understand explanations.
Definition of Commercial Banks, Duties, Functions, Types and Activities
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Definition of Commercial Banks
In Law no. 10 of 1998, Commercial Banks are banks that carry out business activities on a regular basis conventional and or based on sharia principles, which in their activities provide traffic services payment.
Commercial banks are also commonly referred to as commercial banks. Services provided by commercial banks are general in nature, which means they can provide all available banking services.
Meanwhile, based on Bank Indonesia Regulation No.9/7/PBI/2007, the definition of a commercial bank is a bank whose activities are provide services in payment traffic, in a conventional manner or based on sharia principles.
Commercial Bank Duties
The duties of a commercial bank are as follows:
- As a collector of funds from the public or also called funding
- As a distributor of lending funds.
Functions of Commercial Banks
In general, the functions of commercial banks are categorized into three, namely:
- Agent of Trust
- Agent of Equity (Equity/Capital Agent)
- Agent of Development
Types of Commercial Banks
According to their status or position, commercial banks are divided into two types of banks, namely:
Foreign Exchange Bank
Foreign exchange banks are banks that have obtained approval or been appointed by the Central Bank (Bank Indonesia) to be able to carry out business activities in the banking sector in foreign currencies.
Foreign exchange banks have the advantage of being able to offer bank services related to these foreign currencies. Examples include transferring money abroad, export and import transactions, buying and selling foreign exchange and so on. Below are commercial banks which include foreign exchange banks, including:
- Bank Rakyat Indonesia Agroniaga
- Bank BNI Syariah
- Bank Bukopin, Tbk
- Bank Central Asia, Tbk
- Bank Danamon Indonesia, Tbk
- Bank Artha Graha Internasional, Tbk
- Bank ICB Bumiputera Indonesia, Tbk
- Bank CIMB Niaga, Tbk
- Bank ICBC Indonesia, Tbk
- Bank Internasional Indonesia, Tbk
- Raharja Economics Bank, Tbk
- Bank QNB Kesawan, Tbk
- Hana Bank
- Interregional Bank
- Ganesha Bank
- Bank INdex Selindo
- Bank SBI Indonesia
- Artha Earth Bank
Non Foreign Exchange Banks
Non-Foreign Exchange Banks are banks that do not yet have a license to carry out transactions as foreign exchange banks, so they cannot carry out transactions like foreign exchange banks.
The following are commercial banks that are included in non-foreign exchange banks, including:
- Bank BCA Syariah
- Mayora Bank
- Sharia Panin Bank
- Bank Artos Indonesia
- Jakarta Services Bank
- Economic Welfare Bank
- Indonesian Dinar Bank
- And so forth
Commercial Bank Business Activities
The business activities of commercial banks include the following:
a. Collecting funds in the form of deposits in the form of current accounts, time deposits, deposit certificates, savings, and or in other equivalent forms.
b. Give credit
c. Issuing a letter of acknowledgment of debt
d. Giving and selling or guaranteeing against its own risk or interests and at the behest of its customers.
- Bills of exchange include money orders accepted by the bank whose validity period is no longer than is customary in the trading of such letters.
- Letters of acknowledgment of debt and other trade papers whose validity period is no longer than the custom in trading the letters in question
- State treasury papers and government guarantee letters
- Bank Indonesia Certificates (SBI)
- Bond
- Trade letters with a maturity of up to one (1) year
- Other securities instruments with a maturity of up to one (1) year
e. Transferring money either for own needs or the interests of customers
f. Placing funds at, borrowing funds from, or lending funds to other banks, using letters, telecommunication facilities or money orders, checks or other means.
g. Receive payments from bills on securities and perform calculations with third parties
h. Provide a place to store goods and securities
i. Carry out custodial activities for the needs of other parties according to a contract.
j. Placing funds from customers to other customers in the form of securities that cannot be listed on the stock exchange
k. Perform factoring activities, credit card business and trustee activities
l. Provide financing and/or carry out other activities according to sharia principles, in accordance with the provisions determined by Bank Indonesia.
m. Carry out other activities commonly carried out by banks as long as they do not conflict with applicable laws and regulations
n. Carrying out activities in foreign currency by complying with the provisions stipulated by Bank Indonesia.
o. Carry out investment activities in banks or companies in the financial sector, such as leasing, venture capital, securities companies, insurance companies as well as settlement clearing and depository institutions, by complying with the conditions set by the Bank Indonesia
p.s. Carrying out temporary investment activities to overcome the consequences of credit failure or financing failure, based on Sharia Principles, with the condition that they must withdraw their participation, by fulfilling the conditions set by the Bank Indonesia
q. Acts as a pension fund founder and pension administrator in accordance with the provisions of the applicable pension fund laws and regulations
Thus has been explained about Definition of Commercial Banks, Duties, Functions, Types and Activities, hopefully can add to your insight and knowledge. Thank you for visiting and don't forget to read other articles.
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